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THE MINISTRY OF FINANCE

THE MINISTRY OF FINANCE

DECISION No. 99/2000/QD-BTC OF JUNE 13, 2000 PROMULGATING THE SECURITIES COMPANIES� ACCOUNTING REGIME

THE FINANCE MINISTER

Pursuant to the Accounting and Statistics Ordinance promulgated under Order No.06/LCT-HDNN8 of May 20, 1988 by the State Council and the Charter on Organization of the State Accounting promulgated together with Decree No.25-HDBT of March 18, 1989 of the Council of Ministers (now the Government);

Pursuant to the Government�s Decree No.15/CP of March 2, 1993 on the tasks, powers and State management responsibilities of the ministries and ministerial-level agencies;

Pursuant to the Government�s Decree No.178/CP of October 28, 1994 on the tasks, powers and organizational structure of the Finance Ministry;

Pursuant to the Finance Minister�s Decision No.1141/QD/TC-CDKT of November 1st, 1995 promulgating the enterprise accountancy regime;

After reaching agreement with the State Securities Commission in Official Dispatch No.09/UBCK of February 28, 2000;

At the proposal of the director of the Accounting Regime Department,

DECIDES:

Article 1.- To promulgate together with this Decision the "Securities Companies� Accounting Regime", which consists of:

- The accounting voucher regime;

- The system of accounting accounts and explanation of the contents, structure, method of recording of accounting accounts;

- The accounting book regime;

- The financial report system.

Article 2.- The Securities Companies� Accounting Regime shall apply to all securities companies operating in Vietnam.

Article 3.- This Decision takes effect as from July 1st, 2000.

Article 4.- The director of the Accounting Regime Department, the director of the Finance Ministry�s Office, the director of the Department for Finance of Banks and Credit Institutions shall have to implement this Decision.

For the Finance Minister

Vice Minister
TRAN VAN TA

COMPANIES SECURITIES� ACCOUNTING REGIME

(Promulgated together with the Finance Ministry�s Decision No.99/2000/QD-BTC of June 13, 2000)

Part one

ACCOUNTING VOUCHER REGIME

A. GENERAL PROVISIONS

Article 1.- Accounting vouchers are written evidences of economic- financial operations which have arisen and actually been accomplished. All data inscribed in the accounting books must be vouched by lawful and regular accounting vouchers.

Article 2.- All economic-financial operations arising in securities trading, transaction or brokerage activities must be recorded in vouchers. Vouchers must be made in accordance with the provisions of this regime and other relevant current regulations (of the State Securities Commission or securities companies) on accounting vouchers and inscribed fully, promptly and truly to the economic-financial operations which have actually arisen.

Article 3.- The accounting voucher regime comprises two systems:

1. The system of compulsory uniform accounting vouchers;

2. The system of guiding accounting vouchers.

The system of compulsory uniform accounting vouchers is the system of vouchers which reflect the economic relations among legal persons or which require universal strict management. Vouchers of this type shall be standardized by the State in terms of size, form, reflecting index, elaboration method and uniform application.

The system of guiding accounting vouchers include accounting vouchers used internally within units. The State guides typical indexes for proper application to each specific cases by units. The securities companies may add or cut several particular indexes, or change the form design in a way suitable to the recording and contents of the requirements on business operation management, but have to ensure the necessary legality of the vouchers.

Article 4.- An accounting voucher system�s contents include 7 indexes:

1. Labor and wages;

2. Goods left in stock:

- Supplies left in stock;

- Securities certificates;

- Custodian securities.

3. Capital in cash;

4. Fixed assets;

5. Securities purchasing and selling transaction vouchers;

6. Securities purchase and sale clearing payment;

7. Sale of commodities.

The system of particular accounting vouchers used in business activities of the securities companies shall be defined by the State Securities Commission (if supplemented) after obtaining the consent of the Finance Ministry.

Article 5.- The accounting voucher must contain all the following details:

1. Appellation of the voucher (invoice/receipt, collection bill, expenditure bill�);

2. Day, month, year of making the voucher;

3. Serial number of the voucher;

4. Name and address of the unit or individual that makes the voucher;

5. Name and address of the unit or individual that receives the voucher;

6. Contents of the arising economic operation;

7. Quantity and value indexes;

8. Signatures of the person who makes the voucher and the person who is responsible for the accuracy of the operation. Vouchers which reflect economic relations among legal persons must be signed by the controllers and the approvers (directors of securities companies), and stamped.

For vouchers relating to the provision of services for investors or other customers of the securities companies, apart from the prescribed details, they must additionally contain the index: The VAT rate and payable amount. If permitted to postpone the VAT payment (under the Government�s decisions on temporary non-application of VAT to securities trading activities), the section for VAT rate and payable amount inscription must be crossed out and the payment amount shall not include VAT.

The vouchers which are used as direct bases for accounting book-entries must be added with index on accounting item determination.

Article 6.- The accounting vouchers must be fully made in the prescribed number of copies. The inscriptions on vouchers must be clear, truthful and full with all details; the blank sections thereon must be crossed out. Erasure and/or correction on vouchers are not allowed. In case of incorrect inscription, the voucher should be disregarded without tearing it from the counterfoil.

Article 7.- The accounting vouchers made and archived on computer systems must ensure the full reflection of all economic-financial information according to the prescribed indexes and they must be printed out for archival in strict accordance with regulations.

Article 8.- To strictly forbid:

- The directors and chief accountants of the securities companies to sign the blank vouchers, pre-printed forms;

- The account holders and chief accountants to sign blank checks;

- The distortion of economic contents of vouchers;

- Corrections, erasure on the accounting vouchers;

- The cancellation of vouchers in contravention of regulations or while the archival duration has not expired;

- The forgery of accounting vouchers;

- Use of irregular and/or illegal vouchers

Article 9.- Order of circulation of accounting vouchers.

The order and time for circulation of accounting vouchers shall be stipulated by the chief accountants of the securities companies. The original vouchers made by the securities companies or sent from the outside must all be gathered to the accountancy sections of the securities companies or to bureaus or sections charged with functions and tasks to manage and monitor the existing quantity and evolution of supplies, assets or economic-financial transactions, securities trading (like the securities transaction bureaus, sections monitoring custodian securities at the central securities trading center). These sections must inspect and control the accounting vouchers in strict accordance with regulations of the internal control system and shall use such vouchers for accounting book entries only after they are inspected and certified as being true and accurate.

The accounting voucher circulation order shall include the following steps:

1. Gathering accounting vouchers;

2. Examining and controlling accounting vouchers;

3. Making accounting book entries;

4. Archiving and preserving accounting vouchers.

Article 10.- The contents of accounting voucher examination include:

1. Examining the transparency, truthfulness and completeness of indexes reflected on the vouchers;

2. Examining the legality and validity of arising economic-financial operations;

3. Examining the accuracy of data and information on the accounting vouchers;

4. Examining the observance of the internal control regulations by persons who formulate, examine, consider and approve each type of economic operation.

If any acts of violating the economic, financial and/or accounting policies, regimes and/or regulations of the State are detected through the examination of accounting vouchers, the concerned persons must refuse (the cash disbursement, payment, exwarehousing�), and at the same time promptly report such to the chief accountants or directors of the securities companies for timely handling according to current law provisions.

For accounting vouchers which have been made not in accordance with the procedures, whose contents and figures are not clear and whose data show discrepancy, the persons responsible for examination or book entries must return them or notify the agencies where the vouchers have been made thereof for handling, additional procedures and adjustments before they are used as bases for book entries.

Article 11.- Archival and preservation of accounting vouchers.

The used accounting vouchers must be arranged, classified, preserved and archived according to the current regulations of the regime of accounting vouchers and documents archival.

All cases of original voucher loss or misplacement must be reported to the chief accountants or directors of the securities companies for timely handling measures. Particularly the loss of sale invoices, receipts and/or blank checks must be reported to the local tax offices or police regarding the quantity of lost invoices, the circumstance of loss for verification measures and handling according to law. Measures must be taken soon to publicize and invalidate the lost vouchers.

Article 12.- Regulations on use and management of accounting voucher tables and forms:

- The securities companies shall have to strictly comply with the provisions of the accounting voucher regime. In the course of implementation, the securities companies must not amend the tables and forms prescribed in this regime. If wishing to supplement or amend tables and forms in a way suited to their particular operations, the securities companies must obtain the written consent of the State Securities Commission and the Finance Ministry.

- In addition to the voucher tables and forms prescribed in this Accounting Voucher Regime, the securities companies may also use the accounting vouchers issued in other legal documents, with several indexes: securities custody, securities transaction and securities clearing payment, being prescribed by the State Securities Commission.

- The pre-printed voucher forms and tables must be carefully kept and must not let be ruined or decayed.

Article 13.- Printing and issuing voucher forms and tables.

1. When printing accounting voucher forms and tables, the securities companies shall have to strictly adhere to the designing contents of forms and tables prescribed in this regime and in legal documents promulgated by the State Securities Commission.

The forms and tables of accounting vouchers for service charges collected and paid into the State budget shall be uniformly issued by the Finance Ministry or accepted for self-printing in service of the collection of charges for securities service activities.

2. Printing houses must not change at their own will the contents of forms and tables and must not undertake the printing of accounting voucher forms and tables in contravention of the provisions in this regime.

Article 14.- Handling of violations:

1. All acts of violating the provisions in this regime shall, depending on the nature and seriousness of the violations, be handled in strict accordance with the provisions of the Ordinance on Accounting and Statistics, the Ordinance on Handling of Administrative Violations and other legal documents of the State.

2. In case of committing acts of abusing the purchase, sale, lending or forgery of vouchers for corruption or illegal business, the violators may, depending on the nature and seriousness of the violations, be fined and examined for penal liability.

B. LIST OF ACCOUNTING VOUCHERS

Ordinal number

Vouchers� names

Issued at

Securities companies� accounting regime

Other legal documents

I. Labor and wages

1

Workday table

01-LDTL

x

2

Extra hour work notification card

02-LDTL

x

3

Wage payment table

03-LDTL

x

4

Ticket for leaves with social insurance

04-LDTL

x

5

Social insurance payment table

05-LDTL

x

6

Reward payment table

06-LDTL

x

7

Work completion certification card

07-LDTL

x

8

Travel papers

08-LDTL

x

9

Vehicle mobilization order

09-LDTL

x

10

Labor accident investigation record

10-LDTL

x

II. Goods in stock

1. Supplies in stock

11

Purchased goods list

01-VT

x

12

Supplies warehousing bill

02-VT

x

13

Supplies delivery bill

03-VT

x

14

Supplies inspection record

04-VT

x

15

Supplies warehouse card

05-VT

x

16

Supplies inventory record

06-VT

x

2. Certificate securities

17

Securities warehousing ticket

01-CC

x

18

Securities delivery ticket

02-CC

x

19

Securities warehouse card

03-CC

x

20

Certificate securities inventory record

04-CC

x

3. Custodian securities

21

Investors� custodian securities deposit ticket

x

22

Companies� custodian securities deposit ticket

x

23

List of securities custodied in the day

01-LK

x

24

Custodian securities deposit certification

x

25

Investors� custodian securities withdrawal ticket

x

26

Companies� custodian securities withdrawal ticket

x

27

List of custodian securities withdrawn in the day

02-LK

x

28

Custodian securities withdrawal certification

03-LK

x

29

Securities pledging contract

x

30

Request for via- account securities transfer

x

31

Securities pledgors� procuration

32

Securities pledgees� procuration

x

33

Pledge � pledge release request paper

x

34

List of pledged securities custodied in the day

04-LK

x

35

Pledged securities certification

05-LK

x

36

STC�s notice on securities temporarily ceased from transaction

x

37

STC�s notice on securities temporarily detained

x

38

Record on securities certificate hand-over between companies and investors

06-LK

x

39

Securities account balance Advice to investors

x

III. Capital in cash

40

Revenue bill

01-TT

x

x

41

Expenditure bill

02-TT

x

42

Order on transfer of investors� money to designated banks

x

43

Advance request paper

03-TT

x

44

Advance repayment paper

04-TT

x

45

Fund inventory table

05a-TT

x

46

Fund inventory table

05b-TT

x

IV. Fixed assets

47

Fixed assets hand-over and reception record

01-TSCD

x

48

Fixed assets card

02-TSCD

x

49

Fixed assets liquidation record

03-TSCD

x

50

Record on hand-over and reception of completely overhauled fixed assets

04-TSCD

x

51

Fixed assets revaluation record

05-TSCD

x

V. Vouchers on securities transaction, purchase, sale

52

Securities purchase order ticket

x

53

Securities sale order ticket

x

54

Amendment order ticket

x

55

Cancellation order ticket

x

56

Securities purchase or sale order register

x

57

List of securities purchased, sold on trading day, for which orders have been matched

01-GD

x

58

Trading result certification

x

VI. Securities purchase, sale clearing payment

59

List of securities sold in the day at securities companies

01-BT

x

60

General list of securities sold in the day at securities companies

02-BT

x

61

List of securities purchased in the day at securities companies

03-BT

x

62

General list of securities purchased in the day at securities companies

04-BT

x

VII. Commodity sale

63

Added value invoice

01-GTKT-3LL

x

64

Table of agency securities settlement

01-BH

x

65

General table of agency securities settlement

02-BH

x

66

Table of securities sale agency commission payment

03-BH

x

67

Recapitulative table of commissions payable to securities sale agents

04-BH

68

Sheet of issuance- underwriting securities settlement

05-BH

69

Table of securities transaction charges calculated for investors by securities companies

06-BH

x

70

Recapitulative table of securities transaction charges calculated for each investor by securities companies

07-BH

x

71

Table of securities custody charges calculated for investors by securities companies

08-BH

x

72

Recapitulative table of securities custody charges calculated for each investor by securities companies

09-BH

x

VII. Other vouchers

73

Spending order

x

74

Expenditure deputation

x

75

Revenue deputation

x

76

Check payment sheet

x

77

Debit advice

x

78

Credit advice

�.

x

Part two

THE ACCOUNTING ACCOUNT SYSTEM AND EXPLANATION OF CONTENTS, STRUCTURE AND METHOD OF RECORDING OF ACCOUNTING ACCOUNTS

Ordinal

number

Account serial number

Account name

Note

Grade 1

Grade 2

Grade 3

Type 1 � Current assets

1

111

Cash

1111

Vietnamese currency

1112

Foreign currencies

1113

Gold, silver, gemstones

1114

Valuable certificates

2

112

Bank deposit

1121

Vietnamese currency

1122

Foreign currencies

3

113

Money on transfer

1131

Vietnamese currency

1132

Foreign currencies

4

114

Deposit of investors in securities transaction

1141

Deposit of investors in securities transaction

1142

Deposit of investment mandator

5

117

Deposit for issued securities sale

6

118

Deposit for securities transaction clearing payment

1181

Securities companies deposits for securities transaction clearing payment

1182

Investors� deposits for securities transaction clearing payment

1183

Investment mandators� deposits for securities transaction clearing payment

7

121

Dealing securities

1211

Stocks

1212

Bonds

12121

Government bonds

12122

Company bonds with Government guarantee

12123

Other bonds

1213

Other securities

8

122

Treasury securities

9

123

Investment mandator�s short-term investment securities

1231

Stocks

1232

Bonds

1233

Other securities

10

128

Short-term investment

1281

Companies� short-term investment

1282

Investment mandator�s short-term investment

11

129

Securities price reduction reserves and short-term investment

1291

Dealing securities price reduction reserves

1292

Reserves for investment mandator�s short-term investment securities price reduction

1293

Short-term investment price reduction reserves

12

131

To be collected from clients

1311

To be collected from Securities Trading Center

1312

To be collected from investors

1313

To be collected from securities issuing organizations or securities issuance underwriting organizations

1314

Advances for sellers

13

133

Deductible VAT

1331

Deductible VAT for supplies, services

1332

Deductible VAT for fixed assets

14

136

To be internally collected

15

138

Others to be collected

1381

Deficit assets awaiting handling

13811

Deficit in settlement of securities transaction awaiting handling

13812

Fund deficit awaiting handling

13813

Asset deficit awaiting handling

1388

Other collectible amounts

16

139

Bad debt reserves

17

141

Advance

18

142

Pre-paid expenditures

19

144

Pledge, collateral, short-term deposit

20

151

Purchased goods en route

21

152

Materials

Details according to management requirements

22

153

Instruments, tools

Type 2 � Fixed assets

23

211

Tangible fixed assets

2112

Buildings, architectural objects

2113

Machinery, equipment

2114

Transport, conveyance means

2114

Managerial facilities

2118

Other fixed assets

24

212

Financial leasing fixed assets

25

213

Intangible fixed assets

2131

Land use right

2133

Innovation patents

2134

Research and development expenditure

2135

Commercial advantage expenditure

2138

Other intangible fixed assets

26

214

Fixed assets corrosion

2141

Tangibles corrosion

2142

Financial leasing fixed asset corrosion

2143

Intangibles corrosion

27

211

Long-term investment securities

2211

Stocks

2212

Bonds

22121

Government bonds

22122

Company bonds with Government guarantee

22123

Other bonds

2213

Other securities

28

222

Capital contributions to joint ventures

29

223

Investment mandator�s long-term investment securities

2231

Stocks

2232

Bonds

2233

Other securities

30

228

Other long-term investment

2281

Companies� other long-term investment

2282

Investment mandators� other long-term investment

31

229

Reserve for price reduction of securities and other long-term investment

2291

Reserve for price reduction of long-term investment securities

2292

Reserve for price reduction of long-term investment securities of investment mandatory

2293

Reserve for other long-term investment price reduction

32

241

Incomplete capital construction

2411

Fixed assets procurement

2412

Capital construction

2413

Fixed asset overhaul

33

244

Long-term deposit, collateral

34

245

Money paid to Settlement Support Fund

35

246

Other long-term assets

Type 3 � Payable debts

36

311

Short-term borrowings

3111

Borrowings from banks and other subjects

3112

Short-term bonds

37

315

Due long-term borrowings

38

331

Payable to sellers

3311

Payable to STC

3312

Payable for deficit of Settlement Support Fund

3313

Payable to securities issuance agents

33131

Payable to securities issuance agents

33132

Charge payable to securities issuance agents

3314

Payable to sellers

3315

Advance from purchasers

39

332

Payable dividends, bond principals and interests

3321

Payable dividends, bond principals and interests

3322

Dividends payable to shareholders

40

333

Taxes and amounts payable to the State

3331

Payable VAT

33311

Output VAT

33312

VAT on imported goods

3333

Import tax

3334

Enterprise income tax

3337

House, land tax, land rents

3338

Other taxes

3339

Charges, fees and other payable amounts

41

334

Payable to employees

3341

Payable to employees

3342

Payable to employee hired from outside

42

335

Payable expenditures

43

336

Internally payable

44

337

Payable to securities-issuing organizations

45

338

Other amounts payable, remittable

3381

Surplus assets awaiting settlement

33811

Surplus in securities transaction settlement awaiting handling

33812

Fund surplus awaiting handling

33813

Asset surplus awaiting handling

3382

Trade union funding

3383

Social insurance

3384

Medical insurance

3387

Pre-acknowledged turnover

3388

Other amounts payable, remittable

46

341

Long-term borrowings

3411

Bank borrowings

3412

Borrowings from other subjects

47

342

Long-term debts

3421

Long-term debts

3422

Long-term bonds

48

344

Long-term deposit, collateral

48

346

Payable to investment mandator

3461

Payable for initial mandatory capital

3462

Payment of collected amounts to investment mandator

49

351

Securities transaction clearing with STC

50

353

Payment of investors� securities transactions

Type 4 � Sources of owners� capital

51

411

Source of business capital

4111

Initially contributed capital

4112

Supplementary capital

41121

Stock capital increment

41122

Capital supplemented from profits

41128

Capital supplemented from other sources

52

412

Asset revaluation difference

53

413

Exchange rate difference

4131

Exchange rate difference arising in the period

4132

Exchange rate difference resulting from period-end revaluation

54

414

Development investment fund

55

415

Financial reserve fund

Details upon various funds

4151

Prescribed reserve

4152

Reserve under charter of securities company

4153

Irregular reserve

4158

Other reserves

56

416

Severance allowance reserve fund

57

421

Undistributed income

4211

Previous year�s income

4212

Current year�s income

58

431

Reward, welfare funds

4311

Reward fund

4312

Welfare fund

4313

Fixed asset � forming welfare fund

Types 5 � Turnover

59

511

Turnover from securities trading activities

5111

Turnover from securities brokerage for investors

5112

Turnover from securities dealing activities

5113

Turnover from management of investment portfolio for investment mandator

5114

Turnover from securities guarantee, issuing agents

5115

Turnover from securities investment consultancy for investors

5116

Turnover from securities custody for investors

5117

Repayment of reserves, advance deductions

5118

Turnover from business capital

51182

Interests on bank deposit, capital loans

51183

Exchange rate interest difference airing in the period

51184

Interests from foreign currency dealing

51188

Other revenues

5119

Revenue from leasing of fixed assets, equipment, the use of information

60

513

Investment interests

5131

Stock revenues

5132

Bond interest

5133

Revenue from capital contribution to joint venture

61

532

Turnover decreases, substractions

Type 6 � Expenditures

62

631

Expenses for securities trading activities

Or detailing according to expense elements

6311

Expenses for securities brokerage for investors

6312

Expenses for securities dealings activities

6313

Expenses for management of investment portfolio for investment mandators

6314

Expenses for guarantee, securities issuing agents

6315

Expenses for investment consultancy for investors

6316

Expenses for securities custody for investors

6317

Expenses for reserves, advance deductions, loss of uninsured assets

6318

Expenses for business capital

63181

Payment of bond interests

63182

Payment of loan interests

63183

Exchange rate loss difference arising in the period

63184

Foreign currency trading loss

63188

Other expenses

6319

Expenses for direct securities trading activities

63191

Expenses for direct personnel

63192

Expenses for office materials

63193

Expenses for instruments, tools

63194

Expenses for fixed asset depreciation

63195

Expenses for services purchased from outside

63198

Other expenses in cash

63

642

Expenses for enterprise management

Or detailing according to expense element

6421

Expenses for personnel

6422

Expenses for materials

6423

Expenses for instruments, tools

6424

Expenses for fixed asset depreciation

6425

Taxes, charges and fees

6427

Expenses for services purchased from outside

6428

Other expenses in cash

Type 7 � Non-business income

64

711

Non-business income

7111

Fixed assets assignment, sale, liquidation profit difference

7112

Insurance indemnities for asset loss

7113

Income from recovery of handled bad debts

7118

Other incomes

Type 8 � Non-business expenditures

65

811

Non-business expenditures

8111

Fixed asset assignment, sale, liquidation loss difference

8112

Insured-asset loss

8113

To be recovered bad debts already handled

8118

Other expenses

Type 9 � Determination of business results, determination of transaction results

66

911

Determination of business results

67

921

Determination of transaction results at STC

68

922

Determination of companies� transaction results

9221

Determination of companies� transaction results

9222

Determination of investors� transaction results

9223

Determination of investment mandators� transaction results

Type 0 � Off-board accounts

1

001

Fixed assets hired from outside

2

002

Supplies kept for other

3

004

Handled bad debts

4

007

Foreign currencies

5

009

Depreciation capital source

6

012

Domestic custody members� securities

0121

Domestic members� transaction securities

01211

Domestic member companies� transaction securities

01212

Domestic member investors� transaction securities

01213

Domestic investment mandators� transaction securities

0122

Domestic members� securities temporarily ceased from transaction

01221

Domestic member companies� securities temporarily ceased from transaction

01222

Domestic member investors� securities temporarily ceased from transaction

01223

Domestic member investment mandators� securities temporarily ceased from transaction

0123

Domestic members� pledged securities

01231

Domestic member companies� pledged securities

01232

Domestic member investors� pledged securities

01233

Domestic member investment mandators� pledged securities

0124

Domestic members� temporarily detained securities

01241

Domestic member companies� temporarily detained securities

01242

Domestic member investors� temporarily detained securities

01243

Domestic member investment mandators� temporarily detained securities

7

013

Foreign members� custodian securities

0131

Foreign members� transaction securities

01311

Foreign member companies� transaction securities

01312

Foreign member investors� transaction securities

01313

Foreign members� investment mandators� transaction securities

0132

Foreign members� securities temporarily ceased from transaction

01321

Foreign member companies� securities temporarily ceased from transaction

01322

Foreign member investors� securities temporarily ceased from transaction

01323

Foreign member investment mandators� securities temporarily ceased from transaction

0133

Foreign members� pledged securities

01331

Foreign member companies� pledged securities

01332

Foreign member investors� pledged securities

01333

Foreign member investment mandators� pledged securities

0134

Foreign members� temporarily detained securities

01341

Foreign member companies� temporarily detained securities

01342

Foreign member investors� temporarily detained securities

01343

Foreign member investment mandators� temporarily detained securities

8

014

Securities sold for other

0141

Securities sold for issuing organizations or securities issuance-underwriting companies

0142

Securities sold for investors

0143

Securities kept in custody for investors

9

015

Securities purchased individually

Part three

ACCOUNTING BOOK REGIME

A- GENERAL PROVISIONS

1. Scope of application

Article 1.- All securities companies shall have to open accounting books, make book-entries, manage, archive and preserve the accounting books in strict accordance with the provisions of this accounting book regime.

Units attached to the securities companies, if assigned to conduct cost-accounting, shall also have to open all required accounting books and observe the regulations on accounting books.

2. Types of accounting book

Article 2.- The accounting books are classified into two types:

Books for general accounting, called the general accounting books.

Books for detailed accounting, called the detailed accounting books.

The general accounting books include two major accounting books: The ledger and the journal.

The detailed accounting books include detailed accounting books and cards.

The State provides for the compulsory forms, contents and recording method for the ledger and the journal while prescribes the detailed accounting books and cards as well as other accounting books as of guiding character.

The registration of accounting books of securities companies with the State management bodies shall comply with the current regulations of the State.

Article 3.- The ledger is used for recording economic-financial operations arising in the period and accounting year according to accounting accounts prescribed in the accounting account regime applicable to enterprises. Data on the ledger reflect the general situation on assets, capital sources and business results of securities companies.

The ledger must reflect all the following factors:

1. Date of book entry;

2. Serial number and date of making vouchers used as basis for book recording;

3. Brief economic contents of arising operations;

4. The sum of money of arising operations inscribed on Debit side or Credit side of the account.

Article 4.- The journal is used for recording economic-financial operations arising in each accounting period and in an accounting year according to the chronical order and reciprocal relations between accounts of such operations. The accounting data on the journal reflect the total arising on the Debit side and the Credit side of all accounting accounts used in securities companies.

The journal must reflect all the following factors:

1. Date of book entries;

2. Serial number and date of elaborating accounting vouchers to be used as basis for book entries;

3. The brief economic contents of arising operations;

4. The sum of money of the arising economic operations.

Article 5.- The detailed accounting books are used for recording the accounting subjects necessary to be monitored in detail according to the management requirements. The detailed accounting books supply information in service of the management of each type of assets, capital source and detailed debts, which have not yet been reflected on the journal and the ledger.

The number and structure of various types of detailed accounting books are not compulsory under regulations. The securities companies shall have to base themselves on the regulations of guiding character in the accounting regimes and the management requirements of the companies to open necessary and appropriate detailed accounting books.

3. Management and use of accounting books

Article 6.- Securities companies shall have to base themselves on the accounting account system, the accounting regimes and procedures of the State and their own management requirements to open necessary general accounting books and detailed accounting books. Each accounting unit is allowed to open and keep only one official and unique accounting book system.

Article 7.- The accounting book entries must be based on the accounting vouchers. All data on the accounting books must be vouched by lawful and valid accounting vouchers.

The accounting vouchers prescribed in the accounting voucher regime for use by the securities companies shall be issued by the Finance Ministry.

Article 8.- The accounting books must be strictly managed, kept and recorded according to clear division of responsibility. Accounting books assigned to any employees, such employees must be responsible for things recorded therein and for keeping the books throughout their use period

When there is any change of book keeper and recorder, or chief accountant (or person in charge of accountancy), the hand-over of responsibility for book keeping and recording between the former personnel and the new personnel must be organized. The record of the hand-over must be signed for certification by the chief accountant.

Article 9.- The accounting books must be made of good-quality paper so as to ensure clear and clean inscriptions therein.

The accounting book recording must be made with good-quality and non-fading ink. It is forbidden to make erasure, to use chemicals to make corrections. In case of need to correct data in accounting books, the methods prescribed in this regime must be strictly adhered to.

Article 10.- Forms of accounting books prescribed for uniform application by securities companies include:

- Form of the general journal;

- Form of book-entry voucher register;

Each form of accounting book is specified with the quantity, structure, order , recording method and relationships among the accounting books. The securities companies shall base themselves on their business operation scales and characters, management requirements, the professional qualifications of their accountants as well as technical facility and equipment conditions for calculation to opt for an appropriate form of accounting books and must strictly adhere to all basic principles of such form of accounting book in terms of: the ledger, structure of assorted books, the relations and combination between different kinds of book, the order and technique of recording assorted accounting books.

B. SPECIFIC PROVISIONS

1. Accounting book opening and recording

Article 11.- The accounting book opening and recording must fully, promptly, accurately, continuously and systematically reflect the situation and results of production and/or business activities, the asset management situation and the capital management situation of securities companies so as to supply necessary information for the elaboration of the financial statements of the securities companies.

It is absolutely not allowed to put outside the accounting books any amounts of assets, supplies or capital of the securities companies in any form.

Article 12.- The accounting books must be opened at the beginning of the accounting year or immediately after the issuance of the establishment decision. Upon the commencement of operation, the directors and chief accountants( or persons in charge of accountancy) shall have to sign for approval these accounting books before their use.

Article 13.- The accounting books must use the pre-printed or pre-lined forms, may be bound in volumes or kept in loose sheets. The used loose sheets must be bound in volumes for archival.

Before using the accounting books, the following procedures must be completed:

For accounting books in volumes:

The first page of a book must be clearly inscribed with the unit�s name, the book�s name, the book opening date, the accounting year and book-entry period, the full name of the book keeper and recorder, the date of closing the book recording or the date of hand-over to other person.

The pages must be numbered and the unit�s stamp must be affixed in between two pages (called overlapping stamping).

The chief accountants (or persons in charge of accountancy) must sign for certification the first and last pages of an accounting book.

For accounting books in loose sheets:

At the beginning of the loose-sheet book, the unit�s name, the ordinal number of each sheet, the month of use, the full names of the book keeper and recorder must be clearly inscribed.

The loose sheets, before being used, must be signed for certification by the enterprise director, stamped and recorded in the loose-sheet use register.

The loose-sheet books must be arranged according to the order of accounting accounts and ensure safety and easy access.

Article 14.- Data on the accounting books must be inscribed clearly, continuously, systematically, neither insertedly nor overlappingly; lines must not be skipped over; if a line is not fully inscribed, the blank section must be crossed out. When a sheet is fully inscribed, the data must be totalled and carried forward to the beginning of the next page.

2. Error correction

Article 15.- Errors ( if any) in accounting books must be corrected according to one of the following three methods:

- Method of making correction (also called the method of crossing out);

- The method of negative figure recording (also called the method of red recording);

- The method of supplementary recording.

Article 16.- When the method of making correction is applied to correct errors on accounting books, the errors must be crossed out with red ink lines so that the crossed-out erroneously written contents can still be seen. On the cross-out lines, the correct figures or words are written in ordinary ink. If the error involves only a numeral, the entire incorrect figure must be crossed out and replaced by the correct figure. The corrections should be certified with the signatures of the chief accountants (persons in charge of accountancy).

This method shall be applied to the following cases of errors:

- Errors in explanation, which do not relate to the reciprocal relations of accounts.

- Errors which do not affect the total sums of money.

Article 17.- When the method of negative figure recording is applied to correct errors, the incorrect book entries must first of all be rewritten in red ink in order to cancel such book entries, then the correct book entries shall be written in ordinary ink for replacement.

This method shall be applied to the following cases of errors:

- Errors in the reciprocal relations among accounts due to wrong determination of items, which have been written in the accounting books and cannot be corrected by the method of correction.

- Errors detected after the account balance sheets have been made and sent.

- Errors in which the book entries in accounts have had a sum of money written more than once or the incorrectly written figure was larger than the correct figure.

When the method of negative figure recording is used for correction of errors, a "correction register voucher" must be elaborated and certified by the signature of the chief accountant (or the person in charge of accountancy).

Article 18.- The method of supplementary recording shall be applied to cases where the book entries on the reciprocal relations among accounts are correctly inscribed but the sums of money written therein are smaller than the actual sums arising in economic-financial operations or the sums of money written in vouchers have not been fully added up.

The accountants shall inscribe the difference in full addition to the correct figures.

Article 19.- Where book entries are computerized, depending on each specific case, the errors can be corrected by one of the three methods mentioned above, but in strict compliance with the following regulations:

- If errors are detected before books are printed out, the corrections may be made directly on computers.

- If errors are detected after the books are printed out, the corrections shall be made on the printed books by one of the three above-mentioned methods, and at the same time the errors on computers must be corrected and new book sheets shall be printed out. The new book sheets must be kept together with the sheets which contain errors so as to facilitate the inspection and control.

Article 20.- When annual settlement reports have been approved or when the inspection, examination and auditing have been completed with official conclusions, if there is a decision to correct the data in the financial statement, relating to the data recorded in the accounting books, the concerned units shall have to make correction in the accounting books and the balance of the relevant accounts. Depending on each specific case, the data correction can be effected directly on the accounting books of the reporting year or the accounting books of the current year (the time when operations arise). In case of adjustment to the accounting books of the current year, notes shall be inscribed in the last page (the last line) of the accounting book of the previous year for convenient comparison and inspection.

3. Closing, preservation and archival of accounting books

Article 21.- At the end of an accounting period (month, quarter) and an accounting year, the accounting books must be closed. Besides, the accounting books shall be closed in the following circumstances: asset inventory, merger, division and separation, ownership transformation, operation suspension, enterprise dissolution etc.

Each time when the accounting books are closed, the book keepers, the book examiners and the chief accountants (or persons in charge of accountancy) must sign their names to the books.

Article 22.- At the end of an accounting year, after the entire accounting work was completed (including the book recording, examination, comparison, book closing and supply of financial statement data), the concerned units shall have to arrange, classify, tie up in packs and list the accounting books to be archived and put them on archive at the archival section of the units.

The time and other provisions on archival of accounting books shall comply with the State�s regime of accounting book preservation and archival.

Where book entries are computerized, at the end of each accounting period after the completion of the book recording and closing, the entire system of general accounting books and detailed accounting books must be printed out in service of the archival as well as financial examination, auditing and inspection. These accounting books must also go through all legal procedures as prescribed by this regime.

Article 23.- Accounting books of all kinds (whether temporarily kept at the accountancy sections or the archives of the units) must be neatly arranged and carefully preserved in locked book-cases or rooms in order to avoid loss or misplacement. At the places of archive, all necessary measures must be taken to ensure the safe preservation of the accounting books.

While accounting books of various kinds are still temporarily kept at the accountancy sections, the chief accountants shall have to organize the preservation thereof. Where they are kept at the archives, the chief accountants and the enterprise directors shall be held responsible therefor.

Article 24.- Sanctions against violations

1. All acts of violating the provisions in the accounting book regime shall, depending on the nature and seriousness of the violations, be sanctioned according to the Ordinance on Accounting and Statistics, the Ordinance on Handling of Administrative Violations and other legal documents of the State.

2. If any act of violation causes serious consequences, the violator can be examined for penal liability according to the Penal Code.

C. LIST OF ACCOUNTING BOOKS

Ordinal

Form of book entry

number

Book names

Code

Book-entry vouchers

General journal

I

General accounting books

1

Book-entry vouchers

S01-CT

x

-

2

Book-entry vouchers register

S02-CT

x

-

3

Ledger (in form of book-entry voucher)

S03a-CT

x

-

4

Ledger (in form of book-entry voucher)

S03b-CT

x

-

5

Ledger (in form of general journal)

S04-CT

-

x

6

General journal

S05-CT

-

x

7

Revenue journal

S06-CT

-

x

8

Expense journal

S07-CT

-

x

9

Unpaid goods purchase journal

S08-CT

-

x

10

Unpaid services provision journal

S09-CT

-

x

II.

Detailed accounting books

11

Cash fund book

S10-CT

x

x

12

Cash, bank deposit book

S11-CT

x

x

13

Cash, foreign currency deposit book

S12-CT

x

x

14

On-transfer money book

S13-CT

15

Book on deposit of securities transaction investors

S14-CT

16

Securities sale deposit book

S15-CT

17

Securities transaction clearing deposit book

S16-CT

18

Settlement Support Fund remittance book

S17-CT

19

Securities dealings detailed book

S18-CT

20

Treasury securities detailed book

S19-CT

21

Book on investment mandators� short-term investment securities

S20-CT

22

Supplies warehouse book (or warehouse card)

S21-CT

23

Detailed book on en-route purchased goods

S22-CT

24

Detailed book on instruments, tools

S23-CT

25

Fixed assets book

S24-CT

26

Book on fixed assets and instrument at their use places

S25-CT

x

x

27

Financial leasing fixed assets book

S26-CT

28

Detailed book on deductible VAT

S27-CT

x

x

29

Detailed book on reimbursed VAT

S28-CT

x

x

30

Detailed book on VAT reduction

S29-CT

31

Detailed book on payment to purchasers (sellers)

S30-CT

32

Securities certificate warehouse book (or warehouse card)

S31-CT

33

Detailed book on long-term investment securities (dealing or of investment mandator)

S32-CT

34

Detailed book on securities price reduction reserve

S33-CT

35

To be recovered bad debt reserve book

S34-CT

x

x

36

Detailed book on borrowed money

S35-CT

x

x

37

Detailed book on securities trading turnover

S36-CT

x

x

38

Investment yield collection detailed book

S37-CT

39

Detailed book on expenses for securities business activities

S38-CT

x

x

40

Detailed book on expenses for enterprise management

S39-CT

x

x

41

Detailed book on non-business expenses

S40-CT

x

x

42

Detailed book on value of traded volume of securities

S41-CT

x

x

43

Detailed book on securities transaction clearing results

S42-CT

x

x

44

Detailed book on custody securities

S43-CT

x

x

45

Detailed book on securities temporarily ceased from custody transaction

S44-CT

x

x

46

Detailed book on pledged custody securities

S45-CT

x

x

47

Detailed book on temporarily detained custody securities

S46-CT

x

x

48

Detailed book on other accounts

S47-CT

x

x

Distribution tables

49

Table of wage, social insuance, medical insurance, trade union funding distribution

S48-CT

x

x

50

Table of raw materials, materials, instrument, tool distribution

S49-CT

x

x

51

Fixed asset depreciation calculation and distribution table

S50-CT

x

x

Part four

THE SYSTEM OF FINANCIAL STATEMENTS

A- GENERAL PROVISIONS

I. THE PURPOSE OF MAKING THE FINANCIAL STATEMENTS

The financial statement system of a securities company is formulated for the following purposes:

1. Synthesizing and presenting in an overall and comprehensive manner the situation on assets, debts, capital sources, business activities and results of the securities company in an accounting period.

2. Supplying major economic and financial information for the evaluation of the actual financial situation of the securities company in the past period of operation and forecasts for the future. The financial statement information shall serve as important basis for making decisions on management and administration of securities trading activities or investment in securities companies by investors, shareholders, present and future creditors of the securities company.

II. CONTENTS OF THE FINANCIAL STATEMENT SYSTEM

1. The prescribed financial statement of a securities company comprises 4 report forms:

- The sheet of account balance Form No. B01- CTCK BB

- The business operation results Form No. B02- CTCK BB

- Currency flow Form No. B03-CTCK HD

- Financial statement exposition Form No. B09- CTCK BB

Besides, in order to serve the requirements on economic and financial management, on direction and management of securities trading activities, the securities companies can additionally provide for other detailed financial statements.

2. The contents, methods of calculation and forms or presentation of indexes in each statement prescribed in this regime shall be uniformly applied to the securities companies.

In the course of application, if deeming it necessary, supplements or amendments to or further detailing of, economic indexes can be made in a way suitable to the characters of business activities of the securities companies provided that they are approved in writing by the Finance Ministry.

III. RESPONSIBILITY AND DEADLINES FOR ELABORATION AND SUBMISSION OF FINANCIAL STATEMENTS

1. All securities companies with full legal person status shall have to elaborate and submit the financial statements in strict accordance with the provisions of this regime. Particularly for the currency flow report temporarily not prescribed as a financial statement which must be elaborated and submitted, the securities companies are encouraged to formulate and use the currency flow report.

2. The financial statements are made and submitted at the end of each quarter (at the end of the 3rd, 6th, 9th and 12th month from the date of starting the accounting year) in order to reflect the financial situation in the quarter and the accounting year. The securities companies can make monthly financial statements in service of the requirements of business activity management and administration.

3. The quarterly financial statements shall be submitted within 20 days after the end of the quarter and the annual financial reports shall be submitted within 90 days after the end of the fiscal year.

4. Recipients of financial statements: The securities companies must address their quarterly and annual financial statements to the following agencies:

Recipients of statements

Finance

(1)

Tax

(2)

Statistics

(3)

Business registration office

(4)

x

x

x

x

(1) The Finance Services of the provinces and centrally-run cities, the Finance Ministry (The Department for Finance of Banks and Financial Institutions).

(2) The Tax Departments of the provinces and centrally- run cities.

(3) The Statistics Departments of the provinces and centrally-run cities.

(4) The State Securities Commission, Securities Trading Center.

Where legal documents on elaboration and submission of financial statements contain provisions different from the provisions in this reporting system, the securities companies shall have to comply with the provisions in the legal documents of higher legality.

B. SYSTEM OF FINANCIAL STATEMENT FORMS (*)

Form No. B01-CTCK: The sheet of account balance BB

Form No. B02-CTCK: Business operation results BB

Form No. B03-CTCK: Currency flow HD

Form No. B09-CTCK: Financial statement exposition BB

BB: Bat buoc (Compulsory)

HD: Huong dan (Guiding)

(*) Financial statements forms not printed here